Foxconn/Hon Hai has signed a letter of intent to purchase a stake in Sharp’s LCD business – which would give the firm management control over the unit, say Bloomberg sources.
The sources said that negotiations and due diligence are still to be completed, and the deal could fall through (as a similar one did in 2012/13 – TA). Although Foxconn will ‘not necessarily’ hold a majority, it would still have management control.
According to Bloomberg’s sources, Foxconn wants to model the deal on chairman Terry Gou’s personal investment in Sharp’s Sakai display plant in 2012 (Display Monitor Vol 19 No 13).
